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Gold prices soar, but Indians prefer coins to jewellery for the festive season
Industry officials said that Indian buyers chose coins and bars instead of jewellery at the Dhanteras Festival on Saturday because they were hoping the gold price rally would continue. Dhanteras marks the beginning of Diwali, a five-day festival of lights. It is considered auspicious to buy gold. In fact, it is the second busiest day for gold purchases in the world. The volume of gold sold during Dhanteras was 10-15% less than last year. However, the total value increased sharply because prices were higher, according to Rajesh Rokde, chairman, All India Gem and Jewellery Domestic Council. Surendra Mehta is the secretary of the India Bullion and Jewellers Association. He said that gold jewellery demand was hit by record-high prices. Prices dropped nearly 30% compared to last year. However, coins and bars flew off the shelves. India's gold jewellery is more expensive than gold coins because buyers pay manufacturing fees of 10-20%. Gold prices in India closed at 127.008 rupees for 10 grams last Friday, after reaching a record high price of 132.294. This represents a rise of over 60% from Dhanteras last year. India's NSE Nifty50 share index rose about 5% over the period. Sachin Jain is the CEO of World Gold Council India operations. This week, Indian dealers quoted a premium. The price of gold can be up to 25 dollars per ounce more than the official domestic prices. This includes 6% import duties and 3% sales taxes. It is the highest it has been in over a decade. Saurabh Gadgil of PNG Jewellers said that the price rise for silver bars, coins and jewellery has been a major factor in driving demand this year. Dealers said investors believe silver will outperform gold. In recent months, the higher returns of precious metals has attracted strong inflows to physically backed exchange-traded gold and silver funds. Rokde, of GJC, said: "With Dhanteras continuing tomorrow afternoon and jewellery stores staying open until midnight, we expect the buying momentum to continue." (Reporting and editing by Jan Harvey; Rajendra Jadhav)
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New Zealand's Finmin aims to strengthen regional ties as US-China trade war continues
Nicola Willis, New Zealand's Finance Minister, said that regional and bilateral trade relationships would continue to grow in the face of the U.S.-China Trade War. Small countries such as hers will have to adjust to a different reality and maintain their priorities. Willis stated in an interview with The New Zealand Herald on Thursday that New Zealand is acutely aware of geopolitical risks and economic challenges. However, her discussions this week at the World Bank and International Monetary Fund annual meetings showed the strength of international institutions as well as trade agreements among other countries. She said that New Zealand and the European Union have expressed an interest in establishing a partnership under the Comprehensive and Progressive Agreement for Trans-Pacific Partnership. This is a free-trade agreement between 11 countries, including Canada and Japan. She said that a separate trade agreement with the United Arab Emirates is also promising. She said: "All those trade relations are very strong. The message we receive from our partners is they want to continue building on them and expanding them rather than going the other direction." "We are cautious and worried about any backsliding in agreements. But we don't see signs that this is happening." IMF and global officials highlighted this week uncertainty and risks associated with a new escalation of the U.S. China trade war. However, they also pointed out that global trade has remained resilient, noting only three countries, the U.S. China, and Canada, had increased tariff rates in the past few months. 72% still adhere to the existing rules. Willis stated that New Zealand was also committed to meeting its emissions reductions commitments under Paris Climate Accord and didn't expect the withdrawal of the U.S. by President Donald Trump from the agreement to derail the country's efforts. Willis stated that "we need to adapt and prepare for the threat and risk of more extreme climate events, not only for ourselves but also for our Pacific Island family who are especially vulnerable to significant climatic event," Willis added. She said that consumers in the U.S. and around the globe would continue to have an interest in the emission profile of countries such as New Zealand. This creates a commercial imperative for climate action. Willis stated that existing trade agreements such as New Zealand’s deal with the EU required continued adherence of climate commitments. There are many bilateral agreements around the world in which countries have agreed to continue their climate action. "I'm seeing many nations continue to honor their commitments." Willis added that New Zealand remained a member of the Five Eyes Group, alongside Britain, Canada, U.S.A., and Australia. It was also increasing its defense expenditure along with other countries amid growing geo-strategic tensions and fragility. (Reporting and Editing by Marguerita Chy)
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As local ceasefire zones are set, repairs begin on the Zaporizhzhia Power Plant lines
Officials said that after a four-week power outage at Ukraine's Zaporizhzhia Nuclear Power Plant, repair work had begun on the damaged power lines off-site. IAEA Director-General Rafael Grossi stated that the work started after local ceasefire zones had been established to allow the repairs to progress. The plant produces no electricity at the moment, but it needs to produce power in order to keep fuel cool and prevent a meltdown. "Restoring off-site electricity is critical for nuclear safety and secure. Grossi wrote on the social media platform X that both sides had engaged with the IAEA in a constructive manner to allow a complex plan of repair to move forward. The Ukrainian Energy Ministry and the Russian-appointed Management of the Plant both confirmed that the maintenance work. In the first few weeks of Moscow’s invasion of Ukraine in 2022, Russian troops seized Europe’s largest nuclear power plant with six reactors. Both Kyiv, and Moscow accuse one another of regular attacks that threaten nuclear safety. The power plant, located near Enerhodar on the Dnipro River, is in close proximity to the frontline. The plant has been disconnected from the grid many times during the three-and-a-half years of war. However, the most recent outage was the longest. Svitlana Svitlana Hrynchuk, Ukrainian Energy Minister said connecting the plant to Ukraine's grid and having Ukrainian experts ensure its stability were essential to prevent a nuclear accident. The Russian-appointed plant management said that the Russian Defence Ministry will play a crucial role in ensuring safety during the repair works. Reporting by Rajveer Pardesi, in Bengaluru; Filipp Lebedev, in London; and Olena Hartmash, in Kyiv. Editing by Jan Harvey.
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Iberdrola Puts 49% East Anglia TWO Offshore Wind Stake Up for Sale
Spanish power utility Iberdrola is seeking to sell 49% of its offshore wind farm East Anglia Two in Britain, which has an estimated total value of 5 billion euros ($5.8 billion), newspaper Cinco Dias reported on Thursday, citing unidentified sources familiar with the plans.The company has hired Bank of America BAC.N and BBVA BBVA.MC as financial advisers for the potential sale, the report said.An Iberdrola spokesperson did not immediately respond to a Reuters request for comment.Iberdrola has been shifting its focus from green assets to power networks in regions with maximum legal certainty, such as the United States and Britain.The company continues to see the U.S. as a key market despite opposition from President Donald Trump's administration to offshore wind. But the bulk of its investments are in power networks - regulated at state level - in Democratic-controlled states like New York, Maine, Massachusetts or Connecticut.In September, Iberdrola announced a 30% increase in investment through 2028 to 58 billion euros - two thirds of which are destined to British and U.S. power networks.($1 = 0.8581 euros)(Reuters - Reporting by David Latona; Editing by Jane Merriman)
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Moody's downgrades Botswana's credit rating to "Baa1" amid a slump in the diamond industry
Moody's, the global credit rating agency, downgraded Botswana's ratings to 'Baa1' (from 'A3') on Friday. The downgrade was attributed to the government's difficulties in adapting to the structural decline in the diamond sector and the increasing government debt. Moody's stated in a press release that "the economy remains heavily dependent on capital-intensive mining of diamonds; diversification efforts are lagging due to reform delays while climate shocks continue to persist." Botswana, long regarded as an African success story in economics, is now in a slump. This is due to the prolonged decline in the global market for diamonds, its main export. The demand has been hurt by the economic uncertainty in the world and the growing popularity of lab-grown gemstones. According to Moody's, the world's largest diamond producer by value has seen its current account deficit increase and reserves fall to an historic low. Botswana is expected to see its economy decline by 6% more in 2025, as the country remains vulnerable to global demand shocks, technological disruptions from lab-grown substitutes and changes in consumer preference. S&P, a peer agency, cut Botswana’s rating last month to 'BBB.' It expects that weak global diamond prices and demand will continue to keep the Southern African nation's fiscal and external flow positions weak. The agency stated that the global diamond slump is not likely to reverse and maintained the country's view as 'negative.' (Reporting and editing by AnushkaChourasia and SfundoParakozov)
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Hand and foot remains found in Kenya suggest ancient human relatives
Researchers in northern Kenya have discovered fossils of the hand and foot bones of an extinct human relative that dates back to 1.52million years ago. This species was able to manipulate stone tools, and would have been fully bipedal. The fossils were the first to be unambiguously associated with the species Paranthropus boisei. Researchers found a partial skull that contained a large portion of the hand and three foot bones. They also discovered most of teeth, a forearm fragment, a partial tooth, and a fragment of a skull. The new discovery is a revelation, especially when you consider the fragmentary nature previous fossils. This species is a descendant of Homo Sapiens, who evolved much later. Paranthropus bossei had a robust build with massive teeth and strong jaws. The skull of Paranthropus boisei was designed for chewing tough plant food. It had a crest on top to anchor the large jaw muscles. Flaring cheekbones gave it a dish shape. It was difficult to know the species without hand and foot fossils. This included whether it could have made and used simple tools. The study, published in Nature this week, was led by paleoanthropologist Carrie Mongle, a researcher at Stony Brook University, New York. The fossils have been discovered on the eastern shore of Lake Turkana in a place called Koobi Fora. Before this discovery, researchers were only able to study the dental and cranial remains, but very little else was known about this species' skeleton, said Louise Leakey of the Koobi Fora Research Project, a paleoanthropologist who co-authored the study. Mongle stated that the hand bones showed it was able to form precision grips like modern humans. This suggests this species could have made and used stone tools. Leakey stated that the handshake would have been very firm. We can tell that this species' hand was built to be able to hold firmly and for a long time. It would have been similar to gorillas as it would have used the hands to break down tough plant food, such as tearing, crushing or stripping vegetation. This is consistent with their hard and fibrous dietary habits, seen in its robust dentition. Fossils also revealed the species' locomotion. It was well adapted to walk upright on two feet. Leakey explained that "we can tell from its few foot bones that it is fully bipedal and not flat-footed, like a monkey, and that it would have had a similar lateral arch to ours which would have propelled the animal forward as it walked." Hominins are species that have evolved from humans. Paranthropus boisei is one of the four hominins that shared East Africa's landscape between one and two millions years ago. There have been discoveries of stone and bone tools dating from this period, but it is unclear if Paranthropus could have made and used them. Genus is a term used to describe a grouping of closely related species. Our species belongs to Homo. Homo, Homo Rudolfensis, and Homo Erectus are extinct species that lived in East Africa at the same time as Paranthropus. Some of these species literally crossed paths. In a study published in 2013, Paranthropus erectus and Homo boisei left footprints that crossed each other at Koobi Fora, a once muddy lakeshore. This discovery raised interesting questions about the relationship and competition between the two species for resources. Mongle explained that "Conventional Wisdom" has it that, while Homo was specialized in bigger brains and stone tools that allowed them to adapt well to changing climates, Paranthropus became a grass-focused dietary specialist. Leakey stated that the Paranthropus eventually went extinct.
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US furloughs workers at Nuclear Weapons Agency due to shutdown
Chris Wright, the Energy Secretary of the United States, said that the Trump administration will start furloughing workers next week at the agency responsible for managing the U.S. arsenal of nuclear weapons due to the shutdown. Wright stated in a posting on X, that furloughs would affect National Nuclear Security Administration employees who are "critical for modernizing our nuclear weapons." The NNSA is a semi-autonomous department of energy that also works in Ukraine to protect dangerous nuclear materials as the war against Russia continues. About 2,000 employees supervise 60,000 contractors who maintain and test weapons in national laboratories across the U.S. Wright told USA Today, that due to the shutdown now in its 17th week, there could be up to tens-of-thousands of contractor layoffs and furloughs for staff. Experts in nuclear weapons control have criticized potential reductions. The Arms Control Association's executive director Daryl Kimball said, "If the Trump Administration really believes the NNSA functions are important - and many are essential for nuclear facilities safety and security - I am sure they will find the funding to keep workers on the jobs, or they may want to reconsider their position regarding the federal government shut down." Wright, speaking to Bloomberg Surveillance Friday, said that the agency would not be furloughing people who work in emergency services. Wright said that the nuclear weapons modernization program, which is replacing older weapons with newer ones, could be affected. He said that the modernization program was just starting to gain momentum. "To have everyone unpaid and not come to work will not be helpful." A non-partisan report from the Congressional Budget Office in April projected that costs for operating and modernizing America’s nuclear forces until 2034 would reach $946 billion. This is 25% more than a previous estimate of 2023. The NNSA and Pentagon share the costs of nuclear weapons.
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A stampede kills two and injures many at the funeral of Kenyan opposition leader Odinga
Doctors Without Borders reported that two people died and over 160 were injured during a stampede on Friday at the funeral of Kenyan Opposition Leader Raila Odinga. Nairobi's Nyayo National Stadium was packed with people for the funeral of Odinga. Heavy security was also in place. Kenyan broadcaster NTV said that some people in the crowd rushed forward to see Odinga's corpse, causing them to crush mourners. It did not provide any further details. Kenya Red Cross spokeswoman said that "our teams are helping to treat and evacuate the wounded" but added that more details were not available immediately. The police did no answer the phone. Doctors Without Borders released a statement saying that two people died in the melee, and that more than 160 other were injured. The exact cause of all injuries, including fractures and blunt trauma, was not immediately known. Three people died on Thursday, when security forces opened fire at mourners at the Kasarani Stadium during a public viewing. Former political prisoner, who ran for president unsuccessfully five times in Kenyan politics for decades. He died on Wednesday, aged 80, in India where he was receiving medical care. Thousands of mourners danced and waved white handkerchiefs at the Friday service. Banners bearing Odinga’s portrait were also displayed. Some blew vuvuzelas and whistles to honour the man whom they called "Baba" or father in Swahili. William Ruto, Kenya's President, attended the service on Friday which included military honours. Since early Thursday morning, people have been taking to the streets to show their respect and to celebrate Odinga. Mourners stormed the main airport of the country when the plane with his body arrived. Flights were suspended for two hours. Odinga will be buried on Sunday at his homestead, in western Kenya. He was particularly beloved by members of the Luo tribe. Many of them believe that he lost the presidency through electoral fraud. Odinga, who is primarily known as an opponent, became Prime Minister in 2008; he also formed a political alliance with the former President Uhuru Nairobitta in 2018 and Ruto in 2018. This has been a career marked by shifting alliances. (Reporting and editing by Toby Chopra, Cynthia Osterman, Vincent Mumo and George Obulutsa)
Green hydrogen retreat threatens emissions targets
Around the globe, green hydrogen developers are cancelling their projects and reducing investments. This could lead to a longer-than-targeted reliance on fossil energy.
The sector's initial goals have been exposed as being unrealistic due to the challenges it faces.
Green hydrogen is prohibitively expensive for industries that are hard to electrify, like steelmaking and long distance transportation.
Jun Sasamura is the hydrogen manager for Westwood Global Energy. He said that the gap between European ambitions and actuality shows the magnitude of the industry's reset.
He said that only a fifth (or less) of all planned hydrogen projects in the European Union will be operational by the end decade. Westwood Global Energy data show that this translates to approximately 12 GW in production capacity compared to an EU target for 40 GW.
He added, "I don't think the EU 2030 target (hydrogen production), will be met in the current state."
Expectations Inflation
Many companies claim that the high costs of green hydrogen and the lack of demand have made many plans unprofitable.
Miguel Stilwell d'Andrade is the chief executive officer of Portuguese energy company EDP. He said: "Green hydrogen had been an inflated expectation which has now turned into a valley or disillusionment."
The demand is missing. In Spain and Portugal there are 400 million Euros ($464.2 Million) in subsidies for hydrogen, but we still need someone to purchase the hydrogen.
Ana Quelhas is the chief of EDP's Hydrogen and Co-Chair of the European Renewable Hydrogen Coalition. She said that although several projects are in advanced stages, they cannot be moved forward due to a lack buyers.
Iban Molina, a company executive from Spain, said that Iberdrola had put on hold plans to expand the capacity of a green hydrogen plant with an electrolyser capability of 20 MW, until it found buyers for more output.
In recent years, they are one of more than a dozen major companies who have cut back on spending or shelved certain projects in Europe, Asia and Australia.
Westwood Global Energy reports that companies had cancelled or delayed over a fifth (or more) of all European projects at the end of 2017.
Emma Woodward, at Aurora Energy Research said: "In the years 2020-2021, we had this vision of hydrogen being used in nearly every sector which hadn't yet been electrified.
"I believe we have realised that there are probably other, more commercially viable alternatives in many sectors." We may not need as much hydrogen initially thought.
Too Expensive
Many governments have supported the development of green hydrogen for many years. This is produced by electrolysis, which splits water using renewable electricity into hydrogen and oxygen.
Australia, Britain and Germany, as well as Japan, announced ambitious investment plans that they hoped would lower costs and create a green hydrogen industry that was profitable and would not need any support.
Minh Khoi Le is Rystad's director of hydrogen research.
Grey hydrogen is twice as costly as natural gas, as an example. This latter product is made from coal and natural gas, and is used in many industries including oil refining, ammonia production and methanol.
He added that costs could drop by 30-40% if the equipment prices fall and the supply chain is scaled up. Meanwhile, Woodward of Aurora and Sasamura of Westwood Global Energy said green hydrogen would not be competitive until then.
Wood Mackenzie, a consultancy, says that only 6 million metric tonnes per annum of low-carbon hydrogen is operational or being built in the world, including green and blue hydrogen, which are made from gas.
The consultancy estimates that 450 mtpa is required to achieve net zero emissions of greenhouse gases by 2050. The EU has pledged to reduce emissions by 55% by 2030 compared to 1990 levels, on the way to its 2050 goal.
The market is priced out of reach for buyers
The industry expected sectors like steel, oil refinement, cement, and transportation to be the first buyers. However, the demand that was expected has not materialised.
Dirostahl is a German die-forging company that makes parts for wind turbines and ships, as well as oil and gas drilling pipes. It is dependent on natural gas fired furnaces and is searching for an alternative.
Green hydrogen is too expensive. The fuel is not available for less than 150 euros per megawatt-hour (MWh), while natural gas costs between 30-35 euros/MWh.
"It just doesn't work." In practice, it's economic suicide. "We'd be totally uncompetitive", he said.
The high price of electrolysers for large-scale production is due to infrastructure bottlenecks, and the increased cost of energy resulting from new rules defining what constitutes "green hydrogen".
Some European countries have reduced their ambitions. Italy recently switched 600 million euros of post-pandemic funding from hydrogen to biomethane. In April, France reduced its 2030 target for hydrogen electrolysis by over 30% and Portugal cut its electrolysis ambitions by 45%.
Last year, the Dutch government made drastic cuts in the funds allocated for the development of green hydrogen and batteries. Instead, the climate fund was redirected to the construction of two nuclear power plants.
In Australia, several players have scaled back their projects or pulled out despite the government's support of more than A$8 Billion ($5.2 Billion).
Even projects that are moving forward face delays. Rystad analysts estimate that 99 percent of the A$100 billion projects announced in the next five-year period have not progressed beyond the concept stage or approval.
DIFFICULTIES IN INFRASTRUCTURE
Hydrogen is also difficult to store, as it requires tanks with high pressure and extremely low temperatures. It can also leak. This makes transporting hydrogen through the old gas pipelines, while waiting for new infrastructure, a risky proposition.
Spain hopes to build 2,600 km (1.615 miles) of hydrogen network, and connect it with another project. The trans-European link H2Med - from Iberian to Northwest Europe.
Arturo Gonzalo is the CEO of Spanish gas grid operator Enagas. He said that while the Spanish network will be operational by 2030, delays of up to two years may occur for other European infrastructure.
He said: "Infrastructure does not happen when the market is already booming; it's something that must be done for the market to burgeon." ($1 = 0.8617 euros) ($1 = 1.5340 Australian dollars)
(source: Reuters)